CEO Confirms Twinkies and Other "Iconic" Brands Will Be Sold

Earlier today we reported that Hostess had decided to liquidate the company, having been unable to reach a satisfactory agreement with its bakers' union.

As a result, its assets will be sold to the highest bidders, and the company will be dismantled piece by piece. It's extremely unlikely that it can be sold as a "going concern" for anything approaching its liquidation value. As a going concern, it probably has a negative value, in fact.

So let the bidding begin, as the auctioneers say.

Twinkies Never Die? Hostess CEO Says He's Hopeful Brands Will Be Sold has the story:

"Hostess Brands is going to liquidate, a blow to lovers of Twinkies, Wonder Bread and Drake’s Coffee Cakes all around the globe.

Liquidated Twinkie would be much less appetizing

But CEO Gregory Rayburn told CNBC today that as the company winds down its operations after failing to reach an agreement with a union, it will try to sell its various brands. There are 30 separate brands under the company’s sugary umbrella.

“I’m certainly hopeful we can sell the brands and that the brands can live on,” Rayburn said. “They are iconic.”

He is certainly correct about the iconic nature of the Hostess brands. The products have lived in Americana for generations, part of pop culture and childhood for millions of Americans. But as consumer tastes have changed and nutrition has become more prominent, the cream-filled sugary processed treats–and treats they are–have struggled with sales.

Rayburn, a restructuring veteran brought in for the bankruptcy, did not shy away from blaming the striking bakers’ union for the liquidation after the company put out an ultimatum earlier this week for them to return to work or face this consequence. He told the television network the union hasn’t “returned our calls in a couple of months.”

And while he will now turn to selling the brands to get them to live on, he added he didn’t think that would lead to better benefits for employees and that it would be “very little consolation” to the 18,500 employees about to be laid off.

Twinkies, rumored never to sour or go bad, will need to tap that mythical longevity to live on."

SUMMING UP

It sure looks like it's all over for the jobs of the 18,500 employees at Hostess.

It's too bad the leadership of the bakers union won't lose their jobs as well. They deserve nothing less as the "winners" who caused the company's demise and their members their jobs.

Of course, that's not going to happen. The Union leaders' jobs will be secure. What a crock!

Thanks. Bob.